Ethiopia ranks seventh among Africa’s most heavily indebted countries, with outstanding liabilities of 1.59 billion US dollars, according to International Monetary Fund (IMF) data released in October 2025.

Egypt leads the continent with total debt of 6.89 billion US dollars, followed by Côte d’Ivoire and Kenya, each holding roughly 3 billion US dollars. Other countries in the top ten include Angola, Ghana, the Democratic Republic of Congo, Tanzania, Cameroon, and Zambia.

While IMF debt is intended to support economic development and financial stability, the high levels of borrowing in these countries can restrict long-term growth. Analysts note that Ethiopia and other highly indebted nations face mounting pressure to allocate national revenue toward debt repayments, often at the expense of social services such as health, education, and infrastructure development.

IMF programmes in several African countries have encouraged governments to reduce fiscal deficits, increase revenues, and better manage public spending. However, these measures have sometimes generated social and economic tensions as debt servicing competes with domestic priorities.

Currency depreciation and declining domestic resources have further complicated debt management in the region. A growing share of national budgets is now directed toward debt obligations, leaving limited fiscal space for investment in critical sectors.